PNC Infratech and PNC Infra Holdings, a wholly owned subsidiary of company have executed definitive agreements with Highways Infrastructure Trust (HIT), an Infrastructure Investment Trust (InvIT) whose sponsor is affiliated with funds, vehicles and/or accounts managed and/or advised by affiliates of KKR & Co. Inc., to divest 12 of the Company’s road assets, which comprises of 11 National Highway (NH) Hybrid Annuity mode (HAM) assets and 1 State Highway BOT Toll asset with approximately 3,800 Lane Kms in the states of Uttar Pradesh, Madhya Pradesh, Karnataka and Rajasthan.
The enterprise value of the transaction is Rs 9,005.7 crore together with the earn outs and is subject to any adjustments as stipulated in the definitive agreements translating to an equity value of Rs 2,902 crore (including cash) on invested equity of Rs 1,740 crore. The transaction is subject to certain regulatory and other customary conditions standard to a transaction of this nature.
The divestment is aligned with the Company’s strategic objective of recycling the capital invested in operating road assets to leverage the ambitious growth vision that has been outlined by the Government of India for this sector. KPMG India Services LLP acted as exclusive financial advisor to the Company, while Shardul Amarchand Mangaldas & Co acted as the legal advisor.
PNC Infratech is an infrastructure construction, development and management company, with expertise in execution of major infrastructure projects, including highways, bridges, flyovers, airport runways, power transmission lines, development of industrial areas and other infrastructure activities.
| Company Name | CMP |
|---|---|
| Larsen & Toubro | 4094.95 |
| Rail Vikas Nigam | 303.10 |
| NCC | 161.30 |
| KEC International | 580.10 |
| Kalpataru Projects | 1232.90 |
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